[IP] Re: hoist with his own petard

[David Farber <dave@farber.net>]

________________________________________
From: ed.biebel@gmail.com [ed.biebel@gmail.com] On Behalf Of Ed Biebel [edward@biebel.net]
Sent: Thursday, March 13, 2008 2:08 PM
To: David Farber
Subject: Re: [IP] Re: hoist with his own petard

One clarification on the points below as I worked for several banks
over the years.

The CTR and SAR are only filed on transactions in cash.  If you
brought in $10,000 in cash, we'd file a CTR.  If you brought in a
check for $10,000 (or $1,000,000,000), no CTR.

The explanation given to us was that non-currency transactions by
their nature (credit card, wire transfer, check, money order, etc.)
created a paper trail that documented that source and recipient of all
money transfers.  Currency had no such inherent paper trail and the
CTR and SAR were designed to create that papertrail for transactions
that might be indications of crimes (primarily failure to pay taxes).

So if Gov. Spitzer had paid by credit card, I'm not sure that
transaction would have received the same scrutiny.  Credit card
transactions for several thousand dollars aren't uncommon, especially
among people that using the cards for business expenses.

Ed



> In the United States, the Bank Secrecy Act (1970) requires the filing
> of a currency transaction report (CTR) for transactions of $10,000 or
> more.  Financial institutions suspecting deposit structuring with
> intent to avoid the law are required to file a suspicious activity
> report. Title 31 of the United States Code, section 5324, provides (in
> part):

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